Ethiopia: technology regulation at a glance

Framework: National Bank of Ethiopia (NBE), Proclamation No. 1359/2024 (Payment Systems); National Payment System (Amendment) Proclamation No. 1282/2023; NBE Public Notice on Birr-Paired P2P Crypto Transactions (February 2026)

Ethiopia restricts crypto use for domestic payments and exchange but permits licensed bitcoin mining. The National Bank of Ethiopia (NBE) formally prohibited all Birr-paired peer-to-peer crypto trading in February 2026, causing major exchanges (Binance, OKX, Bybit) to suspend Ethiopian Birr P2P services. A comprehensive digital-asset regulatory framework is under active development but not yet enacted.

Framework: National Artificial Intelligence Policy (Council of Ministers, 27 June 2024); Personal Data Protection Proclamation No. 1321/2024; Ethiopian Artificial Intelligence Institute (EAII, established under Regulation No. 510/2022)

Ethiopia's Council of Ministers unanimously approved its first National Artificial Intelligence Policy on 27 June 2024, a non-binding strategic document that sets priorities for responsible AI development but imposes no binding legal obligations. The Personal Data Protection Proclamation No. 1321/2024, published in the Federal Negarit Gazette on 24 July 2024, provides the only binding regulatory layer relevant to AI by governing personal data processing. No standalone, binding AI law has been enacted or formally tabled in parliament as of May 2026.

Framework: Personal Data Protection Proclamation No. 1321/2024; supervised by the Ethiopian Communications Authority (ECA)

Ethiopia enacted its first comprehensive data protection law, Proclamation No. 1321/2024, approved by Parliament on 4 April 2024 and published in the Federal Negarit Gazette on 24 July 2024, entering into force immediately. The law imposes GDPR-influenced obligations on all public and private entities processing personal data in Ethiopia, with the Ethiopian Communications Authority designated as supervisory authority. As of early 2026, enforcement remains nascent: implementing directives are still pending ECA approval and no public enforcement actions have been recorded.

Framework: National Payment System Proclamation No. 718/2011 (as amended by Proclamation No. 1282/2023), administered by the National Bank of Ethiopia (NBE), implemented through the Licensing and Authorization of Payment Instrument Issuer Directive (originally ONPS/01/2020, amended by Directive No. NPS/10/2025) and the Payment System Operators Directive.

Ethiopia has an in-force, dedicated licensing regime for digital payments and fintech: under the National Payment System Proclamation (amended 2023), no entity may issue payment instruments (mobile money / e-money wallets) or operate a payment system without an NBE licence or authorisation. The NBE has issued detailed directives covering Payment Instrument Issuers and Payment System Operators, capital and governance requirements, transaction limits, and mandatory interoperability, and a national instant-payment rail (EthioPay/EthSwitch) is operational. There is, however, no dedicated framework specific to open banking or BNPL.

Framework: Immigration Proclamation No. 354/2003 (as amended); Council of Ministers Regulation No. 432/2018; administered by the Immigration, Nationality and Vital Events Agency (INVEA) and Ministry of Labour and Social Affairs (MoLSA)

Ethiopia has no dedicated digital-nomad or remote-work visa. Remote workers and relocators may pursue legal long-stay status only via the employer-sponsored Employment Visa (requiring a registered Ethiopian entity) or the Investment Visa (requiring USD 100,000-200,000 minimum capital commitment to an Ethiopian business). A tourist or business visa does not authorise work of any kind.

Framework: Computer Crime Proclamation No. 958/2016; Hate Speech and Disinformation Prevention and Suppression Proclamation No. 1185/2020; Media Proclamation No. 1238/2021; Personal Data Protection Proclamation No. 1321/2024, overseen by the Ethiopian Media Authority (EMA), Ethiopian Communications Authority (ECA), and Information Network Security Agency (INSA)

Ethiopia operates a fragmented set of online content laws, but internet governance is primarily characterised by pervasive state restriction: routine regional internet shutdowns during conflicts, episodic national social media blocks, and criminal penalties for online speech. Freedom House rated Ethiopia 'Not Free' on its Freedom on the Net 2025 index, ranking it among the lowest-scoring countries in Africa.

Framework: Computer Crime Proclamation No. 958/2016; Personal Data Protection Proclamation No. 1321/2024; Information Network Security Administration (INSA) oversight, with a Draft Critical Infrastructure Cybersecurity Proclamation currently under parliamentary review

Ethiopia's cybersecurity regime rests on the 2016 Computer Crime Proclamation (criminalising illegal access, interception, and damage to critical systems) and the 2024 Personal Data Protection Proclamation (requiring 72-hour breach notification to the Ethiopian Communications Authority). INSA, the national cybersecurity authority, currently exercises sector-specific oversight over finance and electric power, and a new Draft Critical Infrastructure Proclamation, expanding protection to 11 sectors, is before parliament and widely expected to be enacted soon.

Framework: Investment Proclamation No. 1180/2020; Commercial Registration and Business Licensing Proclamation No. 980/2016 (as amended by No. 1150/2019); Commercial Code 2021; administered by the Ethiopian Investment Commission (EIC)

Foreign investors may establish wholly-owned companies in most sectors in Ethiopia, subject to a minimum capital of USD 200,000 and a mandatory investment permit from the Ethiopian Investment Commission (EIC). Certain sectors remain reserved for Ethiopian nationals or carry higher entry thresholds, but the government has progressively liberalised since 2020, most recently opening retail and wholesale trade to foreigners via a directive effective June 2025. The multi-step registration process, spanning the EIC, National Bank of Ethiopia, and tax authority, typically takes several weeks to a few months.